The Incredible Shrinking Trade Deficit

This month’s report from the Commerce Department showed exports up more than $1.5 billion from the prior month to $184.97 billion and showed that imports were down by almost $3.5 billion to $227.9 billion.

We would note a caveat here. The Commerce Department reading appears to be based a lot on lower oil import prices as those prices fell by the most in three-years (crude imports fell to $26.38 billion from $29.38 billion the prior month). Exports reached a record based on cars and parts, industrial supplies and consumer goods.

The trade deficit with China did rise by just over 5% to $27.4 billion.

JON C. OGG

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